Rise of yen behind ACV losses

HÀ NỘI — The Airports Corporation of Việt Nam (ACV) incurred losses of VNĐ1.37 trillion (US$60.8 million) due to the sharp increase in the value of the Japanese yen.

ACV, as a large borrower of Japanese official development assistance (ODA), has released its financial report for the second quarter of the year, showing revenues of VNĐ3.26 trillion. However, its financial costs have increased to VNĐ1.4 trillion, affecting its businesses.

Further, it posted a net loss of VNĐ124 billion because it suffered heavily from appreciation of the yen.

By the end of June, ACV borrowed more than VNĐ15.6 trillion in Japanese yen through the Japan International Cooperation Agency (JICA) to build a terminal at Tân Sơn Nhất International Airport.

The corporation also received a preferential loan to build the international terminal at Nội Bài International Airport. Its total loans in Japanese yen were as high as VNĐ15.77 trillion.

However, the Japanese yen has been in an upward trend this year. Vietcombank on Tuesday quoted the đồng/yen exchange rate at VNĐ212 per yen, posting a surge of 15 per cent, in comparison with VNĐ184 per yen at the beginning of this year.

Last year, ACV reported a loss of VNĐ666 billion due to appreciation of the yen.

This has been the first year in which the corporation has operated under the joint stock company model since July 1.

In 2015, it reported revenues of VNĐ13.3 trillion and post-tax profits of VNĐ1.75 trillion.

The Ministry of Transport has been the largest shareholder at ACV. It also has the largest scale in transport and aviation infrastructure management in the country. It operates 22 airports, including seven international airports and 15 local airports. By the middle of 2016, its total assets were over VNĐ46 trillion.

ACV has targeted to serve 73.4 million passengers, with revenues of VNĐ12 trillion and pre-tax profits of VNĐ2 trillion in 2016.

It is also carrying out 19 investment projects, with total capital of VNĐ5.8 trillion. Some of its large projects include the Tân Sơn Nhất International Airport expansion, with total investment of VNĐ1.06 trillion, Phú Quốc Airport expansion, with VNĐ696 billion, and Cát Bi International Airport car park, costing VNĐ723 billion.

Its VNĐ336.6 trillion Long Thành International Airport is expected to be completed by 2025 and serve 25 million passenger per year.

ACV has been selecting consultancy firms to write a feasibility report to submit to the Prime Minister in the third quarter of 2017. — VNS